Alrosa calls for end to $25,000 ceiling on individual diamond exports.
Diamonds in the treasury of Yakutia, Russia's diamond capital. Picture: The Siberian TImes
The move comes as Russia revamps its diamond business as a key part of the strategy to boost the country's Far East.
This year Alrosa announced the opening of a Eurasian diamond centre in Vladivostok that will allow the company to double diamond sales, reaching $1 billion a year in the Asian-Pacific region by 2018.
But there is a hiccup in the plan after the realisation that individuals can only take diamonds with up to $25,000 out of the country without being tied in red tape.
The diamond giant's vice president Rinat Gizatulin highlighted the issue to the Russian Finance Ministry in a letter, reported Vedomosti.
Alrosa calls for end to $25,000 ceiling on individual diamond export. Pictures: Kristall Smolensk, The Siberian TImes
For stones worth more than $25,000, a 'customs export procedure' is needed but this cannot be carried out by an individual. Gizatulin told Vedomosti that the company is proposing either to increase the top limit, or eliminate it.
A 3-4 karat dismond could cost $25,000, according to analyst Oleg Petropavlovsky.
According to The Diamond Registry website, a round 2-karat diamond can cost between $11,800 and $48,400. Abolition of the top limit will allow ex the market capacity, according to Gizatulin.
Alrosa sold $454 million in diamonds in September, said the Russian diamond monopoly. This included $435.1 million in uncut diamonds and $18.9 million in cut diamonds. Overall sales totaled $243 million in August.
'There was good demand in September for almost all categories of rough diamonds, in keeping with our expectations. Sales were significantly higher than in September 2015,' said vice president, Yury Okoyemov.
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